Asked by
Martik Atoyan
on Oct 10, 2024Verified
Future costs that do not differ between the alternatives in a decision are avoidable costs.
Avoidable Costs
Expenses that can be eliminated if a particular decision is made or if a business operation is discontinued.
Future Costs
Costs that have not yet been incurred but are expected to be spent in the future for operational or investment purposes.
Alternatives
Different options or strategies available for consideration in decision-making processes.
- Understand the concept of relevant and irrelevant costs in decision-making.
Verified Answer
AM
Learning Objectives
- Understand the concept of relevant and irrelevant costs in decision-making.